FBR, SBP: change at the top

Step to remove SBP, FBR executives amid bailout talks with IMF is risky

The PTI and Imran Khan are skilled at inciting emotions that possess high shock value. At the time of writing, Pakistan is without a governor in the State Bank of Pakistan and without a Federal Board of Revenue chairman.

Both gentlemen were removed on May 3 from their respective positions amid expressed discontent by PM Khan over their performance and the resulting deficits. Only a few weeks ago, Asad Umar was removed from his position as finance minister.

In one point of view, the removal of officials when overall economic circumstances are negatively impacted is honourable, especially when senior persons resign of their own accord. However, through another lens, the economy is in dire straits and to make major changes at this time could prove careless.

When a person is appointed to a position, he or she should justly be given ample time to learn and work to improve conditions. Pointing fingers has been a favourite pastime of leaderships but it has usually been in the form of inter-party accusations with one party blaming another for economic downturns.

In fact, the PPP chairman recently laid blame on PM Khan’s leadership for the weak economy. However, the difference with the PTI is, it does more introspection than past governments, though levels of pride have been similar. The step to remove the SBP and FBR executives at this time might be prudent, but amid bailout talks with the IMF and reforming tax policies to improve the tax revenue deficit, the timing is risky.

With the projection of a record shortfall of Rs350 billion in revenue collection, the changes effected by the PTI government seem to be engendered out of desperation but options are limited. A caveat here is that the replacement of Asad Umar, Dr Abdul Hafeez Shaikh, seems to be wanting to build his own team.

So long as the replacements are merit-based, we have no issues, nor should outgoing officials in the best interest of helping Pakistan stay afloat. History should not be repeated, either in the sense of economic performance or the hiring of officials based on factors others than merit.

Published in The Express Tribune, May 5^th, 2019.

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